Will GBP/EUR Break Out as French Political Risk Builds? Pound to Euro News

Modified: Tuesday, 26 August 2025 21:00 BST - Written by David Woodsmith

STORY LINK Will GBP/EUR Break Out as French Political Risk Builds? Pound to Euro News

The Pound to Euro exchange rate (GBP/EUR) was trapped in a narrow range on Tuesday despite fresh concerns over France’s political outlook.

At the time of writing, the GBP/EUR was trading at around €1.1592, virtually unchanged from Tuesday’s opening levels.

The Euro (EUR) held its ground against most major currencies on Tuesday, showing resilience despite renewed political turbulence in the Eurozone.

Reports suggest that France’s National Assembly could remove Prime Minister François Bayrou in a confidence vote scheduled for September, heightening uncertainty.

Even so, with no significant data published from the bloc, the single currency managed to remain broadly stable.

A more cautious market mood lent some support, allowing the Euro to benefit from its safe-haven appeal during the session.

The Pound (GBP) traded on a steady footing through Tuesday’s session, with Sterling showing little movement in the absence of UK economic data.

Caution among investors likely limited any strong positioning, as markets looked ahead to an upcoming speech from Bank of England (BoE) policymaker Catherine Mann.

If Mann strikes a hawkish tone in her remarks on Tuesday evening, it could provide the Pound with a slight lift, and could offer GBP some support after a quiet day of trade.

Looking ahead to Wednesday, the Pound Euro (GBP/EUR) exchange rate could see fresh movement with the release of Germany’s latest GfK consumer confidence report.

GBP/EUR UPDATE

September’s reading is expected to show no improvement, holding steady at -21.5, the weakest level since April.

If confirmed, the ongoing strain on household sentiment in the Eurozone’s largest economy may drag on the common currency during mid-week trade.

For the Pound, attention will turn to the UK’s CBI distributive trades survey for August.

While the release is considered a mid-tier indicator and unlikely to drive major volatility, another small improvement could lend Sterling limited support as the session unfolds.

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TAGS: Pound Euro Forecasts